Few peculiar situations happens in crypto which decides what the next trend is going to be! It is
THE NEWS. FOMO (Fear Of Missing Out) and FUD (Fear, uncertainty and Doubt) are possibly the most frequent words that we get to hear in this space. The effectiveness of these two situations can be seen when it reflects the price on a crypto. I doubt there is anyone who have never really fell into the trap of either of these two. If you have, congrats my friend! If you have not, wait for your turn boy/girl!
Technical analysis in trading stocks/crypto is one of the best way to expect what might happen in the coming days. But even that is not accurate. Some traders may refer it to full proof but behind the story it has different value and expectations as well. I am not saying TA does not work, what I am referring to is TA has less effect if we compare it with FOMO or FUD. Let me demonstrate a little!
Have you been noticing the price of
DEC has been increasing in Hive-Engine. This is clearly
FOMO. In the recent announcement of Land implementation by Splinterlands within the game, people are rushing to purchase DEC for the purpose of LAND within the game which is going to happen in the next few weeks. Which is resulting the uptrend of the price of DEC. This will probably go on for few more days, until the FOMO settles down.
Coming to FUD! Recently I bought a token which was pumping like crazy. I took a bad judgement on this ituation and I had to pay for it as well. If I am being honest, I was becoming little greedy and I was expecting it to rise little bit more, even though my profit was more than double ;) With high hopes I went to sleep and as soon as I woke up the damage was already done. One of the member of the token's team, made a bad call and tweeted a nonsense which literally shook the coin hodlers and thus the dumping started. It came down hard and I lost a profit % from there. Now FUD is real and I can not blame people/investors/hodlers as we all want a decent ROI for us. Panic really gets us more easily than we can can imagine.
Two simple steps that I follow (at least I try) make a percentage for your buy and sells. I mean at what % you are going to take profit, once you achieve that take your profit. If you think positively and the news is correct about an uptrend than you might take that risk but be careful of what you wish for. And for FUD, try not to panic, instead find the solution and look out what the team is doing (of the coin) and act accordingly. Market, team, token does plays a crucial role for it. If need be, sell out and wait for another opportunity to get in or move on. This sort of shit happens in crypto. Volatility is certain!
These two situations are hard to deal with. Even the best of the best, gets consumed by either of these two feelings. It takes a lot of time to digest the situations and take rational decisions when over these steps. Well, I hope you do not make such massive loss in these sort of situations as we learn from experience and make use of it in a wise way.
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